What awaits the cryptocurrency sector?

Over the past week, the cryptocurrency market has been going through critical moments. Bitcoin and Ethereum have lost between 6% and 7% of their value, while other assets, such as XRP, have halved. 

Investors are afraid of a further increase in the interest rate, which has already led to losses in global assets, including cryptocurrencies. Moreover, the information that Elon Musk's company, SpaceX, decided to sell its bitcoin reserves in the amount of $373 million only worsened the situation. 

Analysts also cite other factors that could cause bitcoin to fall. One of them is an increase in the yield of US government bonds, which may indicate a decrease in market liquidity. Another possible reason may be the foreign exchange market: and although analysts rule out the crisis of the Chinese real estate company Evergrande as the main reason for bitcoin price fluctuations, the risk of yuan devaluation could play a role in the sell-off.

It is also worth considering the activity of major players. Experts note that traders with long positions have liquidated their bets in excess of $822 million over the past 24 hours, suggesting a further increase in the value of crypto assets.